As Clock Strikes 12, U.S. Hands Iraq Control of Green Zone

U.S. officials in the Green Zone spent the final days of December on high alert amid reports that extremists were plotting to carry out a headline-grabbing multi-pronged attack on Christmas or New Year's Day targeting Americans.

Acting on U.S.-gathered intelligence, Iraqi officials detained an Iraqi army captain and an employee of Iraq's Interior Ministry, according to two U.S. officials who spoke on the condition of anonymity to discuss security matters. An Iraqi judge set the detainees free after determining that there was insufficient evidence to prosecute them.

U.S. officials have been able to detain indefinitely Iraqis suspected of wrongdoing, but they lose that right Thursday when the new security agreement goes into effect. "The reality is that there are people who are very concerned," one official said. Referring to the alleged plot and the measures it triggered, he added: "That really set the reality for us -- cold-water reality."

On Monday night, the Green Zone was hit by a mortar shell or rocket, the U.S. military said.

Americans are not the only ones feeling anxious about the transition. Several Iraqis said that while they welcome the symbolism of the handover, they are afraid of the possible repercussions.

"It's too early to pull out U.S. troops from the area," Kasim Ali Judor, 26, a guard at the Italian Embassy, said on a chilly recent afternoon. "I don't think our government has the capacity to secure the area without Americans."

Haider Mahmoud, 28, another guard employed at a nearby compound, echoed that view.

"We prefer American forces in charge of the Green Zone," he said, as a group of colleagues started talking about the imminent transfer. "Nothing is more beautiful than rules. I respect the Iraqi security forces, but they can't compete with the American forces."

As rumors of a contracting Green Zone have circulated among residents in recent months, some have begun referring to parts of the district as "pink" and "amber" zones. The portion of the Green Zone that includes the parliament building, the al-Rasheed Hotel and a small number of U.S. military offices, may soon be transferred to exclusive Iraqi control, U.S. and Iraqi officials said.

Several Iraqi lawmakers and parliament employees have for years complained about being subjected to stiff security measures on their way to work. Officials must have their fingerprints and irises scanned by U.S. troops before they receive a badge.

On the way in, many were subjected daily to multiple pat-downs by Peruvian guards and had to step aside while bomb-sniffing dogs inspected their briefcases. The security measures were not unfounded. In 2007, a bomb exploded in the parliament's cafeteria.

Independent lawmaker Hussein Shkur said he thinks the transition will be largely cosmetic, at least in the short run.

"In my opinion, the Americans will not carry out a complete, genuine handover," he said. "It is only natural that the Americans will still be in control, and not from behind the scenes as some may think, but directly and openly."

Special correspondents K.I. Ibrahim, Zaid Sabah and Aziz Alwan contributed to this report.